🇺🇸 US: Spending stays strong, but inflation remains sticky
Americans keep spending even as wage growth slows and savings decline. In August, real spending rose for the third consecutive month (+0.4%), showing demand remains solid.
💸 Inflation (PCE): +0.3% m/m and +2.7% y/y. Core PCE steady at 2.9%, still above the Fed’s target.
➡️ Persistent price pressures → slower path for rate cuts.
👷 Incomes are losing momentum, and the savings rate dropped to a yearly low (4.6%). Spending holds up, but on increasingly fragile ground.
💡 For investors: the US economy remains resilient but shows signs of overheating. Equities are supported by strong consumption, while Treasuries and the dollar are likely to stay sensitive to September’s payrolls data.
📈 For now, the outlook suggests the trend is more likely to remain upward or sideways, with very limited downside risk.... Show More
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